Bankrupt Diocese Makes $45.7M Offering To Victims

Law360 (February 1, 2006, 12:00 AM EST) -- Embroiled in thorny bankruptcy proceedings, the Roman Catholic Diocese of Spokane, one of three nationwide Roman Catholic dioceses that have filed for bankruptcy due to claims of sexual abuse by priests, has offered a $45.7 million settlement to victims.

The Spokane diocese, which filed for Chapter 11 bankruptcy protection in December 2004, must gain approval of the settlement offer from the U.S. Bankruptcy Court and the victims within 120 days.

A committee of victims, represented by James Stang of the nation's largest bankruptcy boutique, Pachulski Stang...